Inheritance and Gift Tax in Andalucía: What Marbella Owners Pay in 2026

For close family, inheritance tax on a Marbella home is now close to zero. Andalucía gives spouses, children and parents a €1 million reduction each and a 99% discount on whatever tax remains. Non-resident heirs, including those outside the EU, can generally benefit too. Here is how it works in 2026, and where the exceptions are.

In Spain, inheritance tax (Impuesto sobre Sucesiones y Donaciones) is paid by the person who inherits, not by the estate. The tax is set nationally but the regions can change reductions, rates and discounts, and Andalucía has used that power to make family inheritances almost tax-free.

Where a property in Marbella is inherited, Andalusian rules normally apply. When the deceased lived in Spain, the region where they lived is what counts. When the deceased or the heir lives abroad, the rules of the region where the Spanish property is located can be applied, which for a Marbella home means Andalucía.

• €1,000,000 reduction per heir: each spouse, registered partner, child, grandchild or parent deducts up to €1 million from the value they receive.
• 99% discount on the tax: on any tax still due after reductions, Andalucía applies a 99% bonification, so only 1% of the calculated tax is paid. This applies to deaths from 1 January 2022.
• Main home: additional reductions can apply when the inherited property was the deceased's habitual residence in Spain.

In practice, a child inheriting their share of a family villa in Marbella will usually pay very little or nothing in inheritance tax. Notary, land registry and the municipal plusvalía tax still apply.

The generous relief is mostly limited to close family. Siblings, nephews, nieces, uncles, aunts and in-laws (Group III) get a much smaller reduction, and cousins, more distant relatives and unrelated heirs (Group IV) get none, with higher multipliers on the tax. If you plan to leave a property outside the close family, this is where planning matters most.

Andalucía also gives a 99% discount on gift tax between close family (Groups I and II). The gift must be formalised in a public deed before a notary, and when cash is given, the deed must be signed within one month of the transfer. A gift of property also triggers plusvalía and, for the donor, possible capital gains tax, so compare the full cost with inheriting before deciding.

Non-residents are taxed in Spain on Spanish assets, such as a home in Marbella. Since European and Spanish court rulings, non-resident heirs can apply the regional rules where the property is located, and this now extends beyond the EU, for example to owners in the United Kingdom, Norway or the United States. The return for a non-resident heir is filed with the Spanish Tax Agency's non-resident office, which applies the Andalusian reductions.

Your own country may also tax the inheritance. Some double tax treaties or foreign tax credits help, others do not, so check both sides.

• The tax return is due within six months of the date of death, and an extension of another six months can be requested before the first period ends.
• Heirs need a Spanish NIE, the death certificate, the will (or a declaration of heirs) and a certificate from the Spanish Registry of Wills.
• Late filing brings surcharges, so start early, especially when heirs live abroad.
• Making a Spanish will for your Spanish assets usually speeds things up considerably.

Low inheritance and wealth taxes are one of the reasons families buy in Marbella for the long term. If you are buying, ask how you will hold the property (in one name, jointly or through a company), as that decision shapes what your heirs will pay. Marbella Hills Homes can put you in touch with trusted local lawyers and tax advisers.

This article is general information, updated in October 2026. Tax rules change and every case is different, so always confirm your own situation with a Spanish tax adviser or lawyer before acting.